Page 14 - The Indian EYE 022726

North The Indian Eye

AMERICANNewsline

14 FEBRUARY 27, 2026
NYC Mayor Mamdani

Releases Balanced Fiscal Year

2027 Preliminary Budget

Confronting inherited fiscal mismanagement, Mayor outlines two paths

forward: tax the rich & end the drain — or force working New Yorkers to pay the price

OUR BUREAU

NEW YORK, NY
YC Mayor Zohran Kwame Mamdani re-
leased the Fiscal Year (FY) 2027 Prelimi-
Nnary Budget, outlining the scope of a fiscal
crisis inherited from the prior Administration and
presenting two clear paths forward: raise revenue
from the wealthiest New Yorkers and most prof-
itable corporations and end the drain of City re-
sources to the State — or balance the budget on the
backs of working and middle-class New Yorkers.
“There are two paths to bridge the city’s inher-
ited budget gap. The first path is the most sustain-
able and fairest: raising taxes on the wealthiest and
corporations, and ending the drain by fixing the im-
balance between what the City provides the State
and what we receive in return,” said Mayor Zohran
Kwame Mamdani. “If we do not go down the first
path, the City will be forced to go down a second,
more harmful path of property taxes and raiding
our reserves — weakening our long-term fiscal foot-
ing and placing the onus for resolving this crisis on
the backs of working and middle-class New York-
ers. We do not want to have to turn to such drastic in from Governor Kathy Hochul and an additional ity fills underbudgeted needs. Roughly 4 percent
measures to balance our budget. But, faced with no $97 million in Foundation Aid — the City faced a – $576 million – supports targeted investments, in-
other choice, we will be forced to.” remaining two-year gap of $5.4 billion. The Mam- cluding: $100 million in FY 2026 for snow removal;
Upon taking office, the Mamdani Administra- dani Administration’s preferred solution is recur- $5 million in FY 2026 for warming centers and shel-
tion identified a pattern of underbudgeted essential ring revenue: increasing personal income taxes on ter connections for homeless New Yorkers; $11.9
services, including rental assistance, shelter oper- New Yorkers earning more than $1 million annually million in FY 2027 for new Street Health Outreach
ations and special education — that widened pro- and raising taxes on the most profitable corpora- & Wellness (SHOW) mobile units and a new Bridge
jected gaps stated in the November 2025 Financial tions, while recalibrating the City’s long-imbalanced to Home site for people living with severe mental
Plan Update to roughly $12 billion across FY 2026 fiscal relationship with the State. illness; $5.3 million in FY 2026 and $38 million in
and FY 2027. To restore transparency and stability, Absent new revenue authority, the City will be FY27 for 200 new attorneys and 100 support staff
the Mamdani Administration launched aggressive forced to use the only tools currently available to in- to reduce tort liability and advance affordability ef-
new savings initiatives, maximized the use of in- crease revenue and fill this gap: property taxes and forts; and more than tripling baseline funding for
year reserves and incorporated updated revenues. the use of reserves. The $127 billion FY 2027 Prelim- HRA’s Community Food Connection program with
Through Executive Order 12, Mayor Mamdani is inary Budget assumes a 9.5 percent property tax rate an addition of $54 million in FY 2027. The Prelim-
requiring every city agency to designate a Chief Sav- increase — generating $3.7 billion in FY 2027. The inary Five-Year Capital Plan totals $113 billion in
ings Officer (CSO) to identify recurring efficiencies. City also applied $980 million from the city’s Rainy all-funds and includes $662 million in FY 2027 to
These savings initiatives are projected to save $1.77 Day Reserve Fund in FY 2026 and $229 million modernize and preserve more than 3,200 affordable
billion across the two fiscal years. from the Retiree Health Benefit Trust in FY 2027 housing units and $48.2 million starting in FY 2027

After applying savings, revenue adjustments in order to balance the budget as legally required. to fully fund the renovation and expansion of Bel-

driven by an upward revision of $7.3 billion in tax Of $14 billion in city-funded agency expense levue’s Adult Comprehensive Psychiatric Emergen-
revenue, and State support — including $1.5 billion changes across the two fiscal years, the vast major- cy Program.

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